Fannie Mae Preferred S (FNMAS)

[NewJerichoMan]

Corker / Warner's plan must be getting some traction. Hearing quite a bit about FMIC (Federal Mortgage Insurance Corp) at AI meetings, which would replace FHFA with a 5 member panel. Requirements would bring capital requirements up to similar levels to FHA's model, i.e., big, think 3% of unpaid mortgage balance.

FnF's retained portfolios would be wound down at a fixed 15% rate. Not to $250B but to zero. Not sure that is possible to get to zero like FHA. ~7 years to achieve.

FnF conforming limits would be wound down at like $35K per year until they reached the old limits of $417K. ~6 years to achieve.

Opinions are mixed on what that would mean for current shareholders. Preferreds be money good? or zero?. As usual, no middle ground.